Reports - Transformer Oil Market
Transformer Oil Market Size, Share & Trends Analysis Report by Type (Mineral-based Oil, Silicone-based Oil, Bio-based Oil) by Function (Insulator, Cooling Agent, Lubricant, Chemical Stabilizer) by End Use (Transmission & Distribution, Power Generation, Railways & Metros, Others) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) by Application (Transformer, Switchgear, Reactor, Circuit breaker, Capacitor) - Global Industry Assessment (2017 - 2022) & Forecast (2023 - 2030)
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2035
6.66%
Asia Pacific
Asia Pacific
2019 - 2023
2023 - 2035
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The global Transformer Oil Market is valued at USD 3.19 Billion in 2022 and is projected to reach a value of USD 6.48 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.66% between 2023 and 2030.
Premium Insights
Insulating oil, also known as transformer oil, is an oil with superior electrical insulation qualities that is stable at high temperatures. Oil in a transformer is primarily used to create electrical insulation between the various live parts. Transformer oils provide enhanced electrical insulation and high-temperature stability and also prevent oxidation. Insulating and cooling a transformer are the main purposes of transformer oil. It must, therefore, possess high thermal conductivity, chemical stability, and dielectric strength, and it must maintain these qualities even when exposed to high temperatures for an extended period of time. They typically have a pour point below 40 °C (40 °F), a flash point above 140 °C (284 °F), and a dielectric breakdown at more than 28 kV RMS. The oil-filled tank may have external radiators through which the oil circulates by natural convection in order to improve the cooling of large power transformers. Transformer oils also expand at high temperatures and contract at low temperatures. For 1,000 liters of oil and a temperature difference of 50°C, this amounts to 35 liters. Transformers thus have an expansion reservoir. Depending on the type of construction, this is provided with dry cartouches, which extract humidity from the air.
Top Market Trends
Economic Insights
The Russia-Ukraine war has had a substantial impact on this market, causing geopolitical uncertainties and affecting oil prices. Many transformer oil suppliers heavily rely on crude oil, and any disruption in their supply chain can lead to price fluctuations and instability in the market. On the other hand, other economic factors driving the growth of the Transformer Oil market include increasing investments in power transmission infrastructure, rising demand for electricity, and the expansion of renewable energy sources. The market for transformer oil is expanding owing to rising urbanization and industrialization in developing nations, as well as government programs to electrify rural areas. For instance, the second phase of Indias "green energy corridor" scheme, which will install approximately 10,750 circuit kilometers of transmission lines and approximately 27,500 mega volt-amperes (MVA) of sub-station capacity for renewable energy projects across the nation, was approved by the cabinet committee on economic affairs (CCEA) in January 2022.
Market Segmentation
Transformer Oil {{Segmentation_Ext}}
Based on the Oil Type
Mineral Oils Frequently have Low Prices and Excellent Electrical Insulation Qualities.
Oils made from crude petroleum are referred to as mineral oils in the Transformer Oil market. These oils frequently have low prices and excellent electrical insulation qualities. Because they are readily available and perform well under typical operating conditions, mineral oils are widely used. They have a short lifespan and are subject to deterioration. Naphthenic-based and paraffinic-based oils are a couple of examples of mineral oils that are frequently purchased for use in transformer oil. Due to their negative effects on the environment and restrictions on their use, mineral oils are in demand more and more. Mineral oils are widely accessible and well-known on the market, which helps to explain their dominance in the Transformer Oil markets oil type segment.
Based on the Function
Manufacturers are Constantly Improving the Performance, Longevity, and Efficiency of the Insulators
In the Transformer Oil markets function segment, insulators are extremely important. These insulating components are in charge of ensuring effective operation and preventing electrical breakdown by blocking the flow of electric current between various transformer components. In this market sector, insulators have dominated because of their crucial importance. The technology of insulators has seen significant advancements and investments in recent years. The manufacturers are constantly improving the performance, longevity, and efficiency of the insulators. For instance, the industry has undergone a revolution thanks to the development of advanced polymer-based insulators with superior electrical and mechanical properties. Additionally, by investing in research and development, insulators with higher voltage ratings and better resistance to environmental elements like pollution and UV radiation have been created.
Based on Application
Transformers are Widely Used in Many Different Industries
Transformers are widely used in many different industries, and as a result, they dominate the market for transformer oil in this application. Electricity transmission and distribution systems depend on transformers to transfer power effectively. For purposes of insulation and cooling, they need transformer oil. Transformer installation in power grids and other electrical infrastructure has significantly increased as a result of the high demand for electricity, particularly in developing regions like Asia-Pacific. For instance, the application segment of the market has seen a sharp increase in the demand for transformer oil as a result of the expanding construction of power plants and substations in nations like China and India.
Based on End-User
The Development of Smart Grids has Allowed for More Efficient Transmission and Distribution of Electricity.
Transmission and distribution sectors currently hold a dominant position in the Transformer Oil markets end-user segment as a result of their critical role in power transmission and effective energy distribution. For these industries' electrical transformers to operate smoothly, transformer oil is essential for cooling and insulating them. This segment focuses on supplying electricity over long distances, making it crucial for maintaining a stable power supply. For instance, the development of smart grids has allowed for more efficient transmission and distribution of electricity, leading to increased demand for transformer oil. These industries are expanding significantly due to the rising demand for renewable energy sources and the increased demand for electricity on a global scale. For instance, the demand for transformer oil in these areas is being driven by the increase in the number of installed power transformers and the rapid urbanization of nations like China and India.
Based on Region
Asia Pacific in Power Infrastructure Development Contribute to Its Significant Market Share
The Asia Pacific region dominates the global Transformer Oil market, primarily due to several factors, such as increasing power consumption, rapid industrialization, and urbanization in countries like China and India. Furthermore, investments made by the region in power infrastructure development contribute to its significant market share. For instance, Chinas state-owned petroleum corporation, Sinopec, has invested in the construction of new transformer oil production plants, such as the one in Tianjin. This facility has a production capacity of 100,000 tons annually and uses advanced technology to produce transformer oil that meets industry standards. Moreover, a major Indian transformer oil manufacturer invested in a new production line to increase the manufacturing capacity of transformer oil by 50%. Such investments signify the regions commitment to catering to the growing energy needs of its population and maximizing the potential of the Transformer Oil market.
Competitive Landscape
The global Transformer Oil market is characterized by intense competition among key players, leading to continuous developments and innovations within the industry. Companies are investing in research and development activities to introduce advanced transformer oils with improved performance and enhanced properties. To gain a competitive edge, businesses are concentrating on product innovation, mergers and acquisitions, and strategic partnerships. For instance, Cargill recently announced the acquisition of Dielectric Fluids Inc. to strengthen its position in the Transformer Oil market by expanding their product portfolio. Another example is Exxon Mobil Corporation, which invests heavily in research and development activities to introduce advanced transformer oil solutions that offer improved performance and efficiency. Such developments made by companies in the Transformer Oil market aim to cater to the increasing demand for reliable and high-quality transformer oil products.
The key players in the global Transformer Oil market include - Neste among others.
Recent Market Developments
Segmentation of the Global Transformer Oil Market
Source: www.vantagemarketresearch.com
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Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis | |
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